PE Investors Pump USD 3.9 Billion into Indian Real Estate

Private equity (PE) investments in Indian real estate reached USD 1.5 billion (INR 131 billion) in the third quarter of 2025, according to Savills India.

Although this is 32% lower than the same period last year, investment activity has stayed steady overall, with total inflows for the year so far reaching USD 3.9 billion, almost the same as in 2024.

In this quarter, the office sector attracted the most money, getting about USD 0.6 billion (INR 52 billion), or 39% of total investments. Data centres were close behind with 38%, showing strong demand for facilities that support AI and cloud technologies. The housing sector made up 20% of the total, while co-living, shared rental spaces though small at 1%, is quickly emerging as an attractive new investment option.

Several major deals during the quarter highlighted continued investor confidence. Blackstone invested USD 566 million to develop a data centre in Mumbai, Prime Offices Fund made a USD 311 million acquisition in Chennai, and 360 One invested USD 272 million in Pune — signalling ongoing global interest in India’s commercial and digital real estate growth.

While institutional investments have slowed since their 2020 peak, inflows in 2025 have remained largely stable, reinforcing India’s position as a strong, long-term real estate investment destination.